Going long USDCAD

Here is a trade that I have been waiting for a long time.

I wanted it to touch 1.06 and hold before I got in long. Unfortunately it never got there and I am now missing 60 points on my long trade. Not a huge amount but still would rather have it than not.

I got in once the bad CAD data came out and it broker the 200 EMA on the H1 chat at 1.067. Once it broke the 1.07 level I added more positions and then once it started reversing and the 55EMA on the H1 held I added more volume. Those ones are now with SL at the point of entry. The main longer trade I am keeping till it reaches about 1.09 now.

To be honest you haven’t missed much yet (well a little) and USDCAD is now trading around 1.0725 and I would say it is a good position to get in with a trailing stop under the 200 EMA or otherwise just being on the safe side to put it at 1.66 bellow all the levels. You are risking about 60-70 points there and looking to take about 180. Not a bad risk reward ratio. If you want to be totally on the safe side you can place it under the lows and under the 1.06 major level. You would then risk about 130 points to take 180 which is still not bad. I recommend to risk around 70 points and if you get stopped out it will give you a better level to enter at 1.06 again then.

That is the trade which I will keep adding positions to on the break of major resistance or if support holds. So I am not long USDCAD for the next month or so.

That is it from me today and don’t forget that the is the Retail Sales and Core retail sales in about half an hour and then Yellen at 15:00 BST. That can obviously change the whole outlook on this trade but I don’t think it will. There is also major CAD news tomorrow with Manufacturing Sales and loads of stuff from the BOC. You can find all that in our economic calendar:

http://savitrading.com/blog/economic-calendar/

Good luck trading.